AOL Says Huffington Post Deal Could Include Layoffs

Internet company AOL could lay off a portion of its employees following its acquisition of online news commentary site Huffington Post, AOL CEO Tim Armstrong said Thursday during an industry conference.

“There will be job changes,” Mr. Armstrong said, in response to a question of whether there would be layoffs coming at AOL, during the paidContent digital media conference in New York.

Jonathan Fickies/Bloomberg News

AOL chief executive Tim Armstrong, in New York, after AOL agreed to buy the Huffington Post for $315 million.

“We’re in the middle of integrating the two companies. There will be synergies and cost savings, which could include layoffs,” Mr. Armstrong said afterward in an interview. He noted that the company still is working through integrating the two companies and has yet to make any final staffing decisions.

He noted during the conference that “people changes” are the hardest to go through, noting that AOL has repeatedly cut its staff following its merger with Time Warner and subsequent spin off in 2009. He said the company would make any staff changes “thoughtfully” and “carefully,” saying that he knows it’s a tough situation, as his dad once was laid off.

The layoffs would be the second major staff reduction since Mr. Armstrong started as CEO of AOL in April 2009. Last year, the company cut about a third of its total workforce, or about 2,300 employees.

The Wall Street Journal reported last week that AOL was considering layoffs related to the Huffington Post acquisition.

AOL previously said that the $315 million deal would bring about $20 million in cost savings because of overlap between the two companies.

The deal, announced in February, is awaiting regulatory review. It is expected to close in days, Mr. Armstrong said.